Unit 3 Equity Securities Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

Preferred stock prices move _____ to interest rates.

A

inversely

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Cumulative Preferred Stock

A

Pays dividends in arrears (missed payments), before any other common stock holders get dividend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Par value of preferred stock

A

$100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Determining to convert convertible securities

A
  1. find conversion ratio ($100par/ CP)
  2. Multiply by stock price
  3. if $ > convertible security, convert
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Higher dividend than stated rate is a

A

Participating preferred stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Class Q common stock

A

associated with an issuer’s dividend reinvestment plan (DRIP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A rights offering will _______ a company’s EPS

A

decrease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly